xvi) Provisions :
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of
the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the
end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those
cash flows (when the effect of the time value of money is material).
xvii) Contingent liabilities acquired in a business combination
Contingent liabilities acquired in a business combination are initially measured at fair value at the acquisition date. At the end
of subsequent reporting periods, such contingent liabilities are measured at the higher of the amount that would be
recognised in accordance with Ind AS 37 and the amount initially recognised less cumulative amortisation recognised in
accordance with Ind AS 18 - Revenue.
xviii) Earnings per equity share:
Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the equity holders of the
Company by the weighted average number of ordinary shares outstanding during the year. For the purpose of calculating
diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average
number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
xix) Dividend:
Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are
recorded as a liability on the date of declaration by the company's Board of Directors.
xx) Cenvat, Service Tax, Vat & GST:
GST credit on materials purchased for production / service availed for production / input service are taken into account at the
time of purchase and GST credit on purchase of capital items wherever applicable are taken into account as and when the
assets are acquired.
The GST credits so taken are utilized for payment of GST on goods sold. The unutilized GST credit is carried forward in the
books.
xxi) Segment reporting
The Company's business activities which were primarily manufacturing and dealing in pesticides and Agro Chemicals falls
within a single reportable segment but from the financial year 2023-24, the company has entered into a secondary reportable
segment which is trading of Agro Products there are no additional disclosures to be furnished in accordance with the
requirement of Ind AS 108. Further, the operations of the Company are domiciled in India and therefore there are no
reportable geographical segment.
xxii) Statement of Cash flows
Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects oftransactions
of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based on the available information.
xxiii) Operating cycle
The Operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash
equivalents. The Company has identified twelve months as its operating cycle. Accordingly, all assets and liabilities have been
classified as current or non-current as per the Company's operating cycle and other criteria set out in Ind AS 1- 'Presentation
of Financial Statements' and Schedule III to the Companies Act,2013.
(i) Securities Premium Account :
Securities Premium reserve is used to record the premium on issue of shares. The reserve will be utilised accordance with the provision of companies act, 2013.
(ii) Retained Earnings :
Profit & Loss can be utilised by the company for distribution to its equity shareholders of the company. The amount that can be distributed by the Company as
dividends to its equity shareholders is determined based on the requirements of the Companies Act, 2013. Thus, the amounts reported above are not
distributable in entirely.
(iii) FVOCI of Actuarial Gain/(Loss) :
The company has elected to recognise the actuarial gain/(loss) on gratuity valuation in the other comprehensive income. These changes are accumulated within
the FVOCI of Actuarial Gain/(Loss)
E. Characteristics of defined benefit plans and risks associated with them:
Valuation of defined benefit plan are performed on certain basic set of pre-determined assumptions and other regulatory framework which
may vary over time. Thus, the Company is exposed to various risks in providing the above benefit plans which are as follows:
a. Actuarial Risk: It is a risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase is Obligation at
a rate that is higher than expected.
Variability in mortality rates : If actual mortality rate are higher than assumed mortality rate assumption than the Gratuity Benefits will be
paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial
loss or gain depending on the relative values of the assumed salary growth and discount rate.
Variability in withdrawal rates : If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benefits
will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.
b. Investment Risk:
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of
instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in
wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.
c. Liquidity Risk:
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such
employees resign/retire from the company there can be strain on the cash flows.
d. Market Risk:
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption
that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to
decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the
corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.
e. Legislative Risk:
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The
government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly
affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such
amendment is effective.
The above fair value hierarchy explains the judgements and estimates made in determining the fair values of the financial instruments that are (a)
recognised and measured at fair value and (b) measured at amortised cost for which fair values are disclosed in the financial statements. To provide the
indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments in to three levels prescribed
is as under:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilties
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liabilty, either directly (i.e. as prices ) or indirectly (i.e.
derived from prices)
Level 3 - Inputs for the assets or liabilties that are not based on observable market data (unobservable inputs)
There were no transfers between the levels during the year
Valuation process
The finance department of the Company includes a team that performs the valuations of financial assets and liabilties required for financial reporting
purposes, including level 3 fair values. The fair valuation of level 1 and level 2 classified assets and liabilties are readily available from the quoted prices in
the open market and rates available in secondary market respectively.
The carrying amount of trade receivable, trade payable, cash and bank balances, short term loans and advances, statutory/ receivable, short term
borrowing, employee dues are considered to be the same as their fair value due to their short-term nature.
40 Financial risk management
The Company's activities expose it to a variety of financial risks, including credit risk, market risk and liquidity risk. The Company's primary risk
management focus is to minimize potential adverse effects of market risk on its financial performance. The Company's risk management assessment
and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to
monitor such risks and compliance with the same.
The Company's risk management is governed by policies and approved by the board of directors. Company’s identifies, evaluates and hedges financial
risks in close co-operation with the Company's operating units. The company has policies for overall risk management, as well as policies covering
specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial
instruments.
The audit committee oversees how management monitors compliance with the company's risk management policies and procedures, and reviews the
adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by
internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are
reported to the audit committee.
I Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations,
and arises principally from the Company's receivables from customers. Credit risk is managed through credit approvals, establishing credit limits, and
continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The history of
trade receivables shows a negligible provision for bad and doubtful debts. The Company establishes an allowance for doubtful debts and impairment
that represents its estimate of expected losses in respect of trade and other receivables and investments. The company has adopted simplified
approach of ECL model for impairment.
i) Trade Receivables:
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer,
including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Company
with various activities as mentioned above manages credit risk. An impairment analysis is performed at each reporting date on an individual basis for
major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The
calculation is based on historical data. Ageing of trade receivables is as under. The Company does not hold collateral as security.
ii) Financial assets that are neither past due nor impaired
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's
assessment of credit risk about particular financial institution. None of the Company's cash equivalents, including term deposits (i.e., certificates of
deposit) with banks, were past due or impaired as at each balance sheet date.
II Liquid Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages liquidity risk by
maintaining adequate reserves, banking facilities including approved borrowing facilities sanctioned by the Parent Company, by continuously
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Long-term borrowings generally mature
between One to Ten years. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due. The Company's policy is to manage its borrowings centrally using mixture of long-term and short-term borrowing facilities to meet
anticipated funding requirements.
The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lender. As of
March 31, 2025 & March 31, 2024; the Company had unutilized credit limits from banks of Rs. 2,27,97,698/- and Rs. 1,15,71,661/- respectively.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the
impact of discounting is not significant.
a) Interest Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
The Company's exposure to the risk of changes in market interest rates related primarily to the Company's short-term borrowings with floating interest
rates.
Long-term borrowings expose the company to risk of changes in interest rates as the Company had External Commercial Borrowings (ECB) carrying a
variable interest rate. In order to hedge interest rate risk arising out of variable interest rate ECBs, company has entered into Interest Rate swaps.
For other borrowings, Company's treasury department monitors the interest rate movement and manages the interest rate risk based on its policies.
47. Additional Regulatory Information (Non Ind AS)
The disclosures required by amendment to Division II of Schedule III of the Companies Act,2013 are given only to the extent
applicable:
i. Title deeds of immovable property other than proper taken on lease by duly executed lease agreement are held in the name of the
company.
ii. During the year there has been no change in the aggregate of the net carrying value of assets on account of revaluation in respect of
Property, Plant & Equipment and intangible assets.
iii. There are no intangible assets under development in the Company during the current reporting period.
iv. No proceedings have been initiated or pending against the company for holding any benami property under the Benami
transactions (Prohibition) Act,1988 (45 of 1988) and the rules made thereunder.
v. The company does have borrowings from banks against the security of current assets.
vi. The Company has not been declared as a willful defaulter by any bank or financial institution or other lender in accordance with the
guidelines on wilful defaulters issued by the Reserve Bank of India.
vii. The company has not entered in to any transaction with companies struck off under section 248 of the Companies Act,2013.
viii. There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.
ix. The borrowing taken by the company from the banks has been used for the specific purpose for which it was taken at the balance
sheet date.
x. There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 which have not been recorded in the books of account.
48.Borrowing from banks or FI on the basis of Security of the Current Assets
Company has borrowings from banks or financial institutions on the basis of security of current assets,
Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are not in agreement with
the books of accounts, the details of same same been reported below
Nature of CSR Activities :- Contribution to MAATR CARE FOUNDATION for setting health camps and providing education, training and
skills development of weaker section of society.
50. On periodical basis and as and when required, the Company reviews the carrying amounts of its assets and found that there is no
indication that those assets have suffered any impairment loss. Hence, no such impairment loss have been provided for the year
ended 31st March, 2025 (For the year ended 31 March, 2024 is Rs. Nil)
51. Previous Periods’ / Years’ figures have been re-grouped / re-classified where necessary to make it comparable with the current
period.
( Signature contains for the Note No. 1 to 51 ) For and on the behalf of the Board of Directors of
As per our report of even date attached Crop Life Science Limited
For Shah & Shah Rajesh V Lunagariya Chunilal S Virolia
Chartered Accountants Managing Director Whole-time Director
DIN :01580748 DIN :07984858
Per Tejas C. Shah Ashwin R Lunagariya Miteshkumar Rajgor
Partner Whole-time Director & CFO Company Secretary
ICAI Membership Number: 135639 DIN : 02731913
Place : Ahmedabad Place : Vadodara
Date : 29th May, 2025 Date : 29th May, 2025
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